Is Equity Residential Stock Underperforming the S&P 500?

Company Overview - Equity Residential (EQR) is a real estate investment trust (REIT) with a market cap of $25.4 billion, focused on acquiring, developing, and managing residential rental properties, primarily in urban and high-density suburban markets [1] - EQR is classified as a large-cap stock, benefiting from its size, brand reputation, and focus on high-demand metropolitan areas, which contribute to stable rental income and long-term asset appreciation [2] Performance Metrics - EQR's shares have declined 17.2% from its 52-week high of $78.84, reached on September 16, 2024, and have fallen 5.1% over the past three months, underperforming the S&P 500 Index's 10.7% return during the same period [3] - Over the past 52 weeks, EQR has decreased by 15.7%, while the S&P 500 Index has increased by 17.6%. Year-to-date, EQR shares are down 8.6%, compared to the S&P 500's 12.5% surge [4] Financial Results - In Q2, EQR reported revenue of $768.8 million, a 4.7% increase from the previous year, although it slightly missed consensus estimates. The normalized FFO (NFFO) was $0.99 per share, a 2.1% year-over-year improvement, meeting analyst expectations [5] - EQR raised its fiscal 2025 NFFO per share guidance to a range of $3.97 to $4.03, which has positively impacted investor confidence [5] Competitive Position - EQR has outperformed its rival, AvalonBay Communities, Inc. (AVB), which has seen a decline of 17.9% over the past 52 weeks and 12.3% year-to-date [6]